Zillow Home Loans Launches FHA Down Payment Aid for Buyers
Zillow Home Loans now offers eligible buyers up to 3.5% of the purchase price as a no-interest second loan to cover FHA down payments.
Zillow Home Loans has introduced a down payment assistance program aimed at easing one of the biggest financial hurdles facing first-time and low-to-moderate-income homebuyers, the company announced Tuesday from Seattle.
Under the program, qualified buyers who finance their home through Zillow Home Loans can receive up to 3.5% of the purchase price toward their FHA down payment. The assistance is structured as a second loan that carries no additional interest and requires no separate monthly payment, reducing the immediate out-of-pocket burden at closing.
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The move comes as elevated home prices and persistently high mortgage rates have stretched affordability across most U.S. markets. Down payment requirements have long been cited by renters as the primary obstacle to homeownership, making programs that bridge that gap particularly significant in the current environment.
By bundling the assistance directly with FHA financing, Zillow Home Loans positions the offering as a streamlined, single-source solution rather than requiring buyers to seek separate municipal or nonprofit grant programs — a process that can add complexity and delay to transactions.
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